Australian Authorities have Published New Requirements for Cryptocurrency Companies
On May 30, the Australian Securities and Investment Commission (ASIC) published a list of new requirements for cryptocurrency companies that hold the initial coin offering (ICO) and operate in the digital asset market. The document contains the following rules:
- If a blockchain startup issues tokens that meet the definition of a “financial product” (i.e., are a security or are entitled to receive dividends from investments), then the company is obliged to obtain a license for the provision of financial services;
- crypto wallets must have permission to provide services for the storage of digital assets;
- the activity of miners of virtual currencies that process transactions in tokens with the status of "financial product" is regulated by the law on corporations, because they act as an intermediary between the company and the consumer;
- cryptocurrency exchanges need to get a license to work in the Australian market;
- payment services and merchants that accept payment in virtual currencies must have a license on providing financial services.